How can you give someone a lot of money without them having to pay taxes on it?

I know you can give individuals $13,000 per year without them having to pay taxes, but how can I give $50,000 to someone without them paying taxes on it? (Other than giving them cash.)

The gift tax applies to the transfer by gift of any property. You make a gift if you give property (including money), or the use of or income from property, without expecting to receive something of at least equal value in return. If you sell something at less than its full value or if you make an interest-free or reduced-interest loan, you may be making a gift.

The general rule is that any gift is a taxable gift. However, there are many exceptions to this rule.

Generally, the following gifts are not taxable gifts:

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Gifts, excluding gifts of future interests, that are not more than the annual exclusion for the calendar year,
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Tuition or medical expenses you pay directly to a medical or educational institution for someone,
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Gifts to your spouse,
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Gifts to a political organization for its use, and
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Gifts to charities.

Annual exclusion. A separate annual exclusion applies to each person to whom you make a gift. In 1998, the gift tax annual exclusion became subject to cost-of-living increases. The exclusion for 1998 through 2001 was $10,000 and for 2002 through 2005 the exclusion was $11,000. For 2006 and 2007 the amount is $12,000. Thus, in 2007, you generally can give up to $12,000 each to any number of people in 2007 and none of the gifts will be taxable.

However, gifts of future interests cannot be excluded under the annual exclusion provisions. A gift of a future interest is a gift that is limited so that its use, possession, or enjoyment will begin at some point in the future.

If you are married, both you and your spouse can separately give up to $12,000 to the same person in 2007 without making a taxable gift. If one of you gives more than $12,000 to a person in 2007, see Gift Splitting, later.

Inflation adjustment. The annual exclusion may be increased due to cost-of-living adjustments. See the instructions for Form 709 for the amount of the annual exclusion for the year you make the gift.

Example 1. In 2007, you give your niece a cash gift of $8,000. It is your only gift to her this year. The gift is not a taxable gift because it is not more than the $12,000 annual exclusion.

Example 2. You pay the $15,000 college tuition of your friend. Because the payment qualifies for the educational exclusion, the gift is not a taxable gift.

The recipient doesn't pay tax on the gift. The GIVER has to file a gift tax return if they give a gift over $12,000 to a person within a calendar year, and might or might not have to pay a gift tax.

There is a tax-free gift that you can make to as many individuals as you wish of $10,000 per year plus an increment that increases until 2010 at which point it reverts to $10,000. Beyond that you must file a gift tax return and the giver is liable for a gift tax which can be of the order of the estate tax, if large enough.

However, it is sometimes feasible to make individual gifts to people who are close to the intended recipient ( e.g. their parents, their children ) and these could, in principle, total $50,000 if giving to these people accomplishes your aim of gifting the original person. Note that the IRS does NOT allow you to wilfully make a gift to a third party with the expectation that they will regift it to the person you originally intended and thereby bypassing the gift tax. In practice, since you need not file a gift tax return for gifts in the $10,000 range, it is hard for them to know although you are on your honor to obey the intent of the tax code voluntarily.

THEY don't pay the tax - YOU do as the giver.

i dont know sweetie but you can send it to me and we'll figure it out from there!!!! lol !!! good luck!!

wait till the end of the year like dec 30 then another payment jan 2

If you are married, both you and your spouse can separately give up to $12,000 to the same person without making a taxable gift.

If you pay tuition or medical expenses directly to a medical or educational institution for someone, that is not a taxable gift.

Damned good question. You find out, let me know, 'cuz when I win the lotto, I'm giving away a bunch of cash, and I don't want folks getting stuck with taxes.

Pay 3 payments of 13k, and then 1 payment of 11k.

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